AGU asks STF to declare bets law unconstitutional

The General Counsel of the Union (AGU) turned back and asked Supremo Tribunal Federal (STF) to declare the online betting law, known as the law of bets, unconstitutional. The federal government’s legal body argues that the absence of legal locks on the speed of the rounds allowed the proliferation of predatory modalities, such as the so-called crash games, among them the popular “game of the tigrinho”.

According to AGU, these modalities accounted for 60% of active users and 28% of turnover on major betting platforms. The demonstration was presented in action that deals with the STF and represents a turning point in the position of the government, which previously defended the constitutionality of the norm.

AGU quotes 'untamed dragon' on request

In the document, the AGU uses the expression “dragon was indomitable” to illustrate the difficulty of controlling the harmful effects of online betting without stricter regulation. The source did not detail the exact context of the sentence, but it reinforces the body's critical tone in relation to the current law.

The change in understanding comes amid debates about the social and economic impacts of bets, which move billions of reais in Brazil. The AGU did not specify which articles of the law should be declared unconstitutional, but pointed out the need for intervention by the Supreme Court to curb the damages.

72 hours for AGU

In another front, Minister Luiz Fux, of STF, gave 72 hours on Friday (2) for the AGU to express itself on Medida Provisória (MP) which deals with the end of bets. The action (ADI 7721) was tried by the National Association of Games and Lotteries (ANJL) and the Brazilian Institute of Responsible Gambling (IBJR).

The entities call for the downing of the medida provisória, which would aim to end online gambling activities in the country. The AGU will have to present its arguments within the deadline stipulated by the minister, who is the rapporteur of the case.

The Impact of Betting in Brazil

The data cited by the AGU reveals the scale of the problem: crash games, such as the "game of the tigrinho", dominate the preference of bettors, accounting for more than half of the users active on large platforms. These games are characterized by fast rounds and high addiction potential, which concerns public health experts.

The lack of specific regulation for the speed of the rounds is pointed out as one of the main flaws of the law of bets. The AGU did not present alternative proposals, but advocated that the STF act to correct the unconstitutionality.

Next steps in the STF

At the request of the AGU, the STF is expected to review the constitutionality of the betting law soon. The manifestation of the organ can influence the trial, which has not yet set a date. Meanwhile, the action on the MP of the end of the bets continues in process, with a deadline for the AGU to position itself.

The outcome of these actions will have a direct impact on the online betting market, which employs thousands of people and generates tax collection. The source did not detail the government’s next steps, but the trend is to tighten the rules.

To follow the unfolding of these decisions and other news of national politics, continue browsing the Boca no Trombone portal.

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